Music industry softens on podcasts

Sony BMG has taken the plunge and has agreed to license some music for podcast …

Sony BMG has decided to dip its toes into the world of podcasted music with its recent agreement with marketing agency Rock River Communications Inc., making it the first (and only, for the time being) major music label in the US to license music for podcasting.

While you may not have heard of Rock River Communications, you will most likely recognize what they do. The agency creates promotional mix CDs for companies like Volkswagen, The Gap, Verizon, Chrysler, and more to hand out at retail stores and dealerships. Rock River, in an attempt to move past CD-only distribution, is now creating promotional podcasts for Chrysler and Ford Motors.

According to the Wall Street Journal, Ford and Chrysler are both paying Sony BMG a flat fee to license music for podcast distribution for one year, no matter how many copies are downloaded. On the customer's side, the podcast will be free and can be kept forever. Rock River says that they are in talks to license music from more music labels in the future for podcasting.

It's no secret that the music industry has always been very much against any form of digital distribution that is not DRMed. Unprotected files of songs or podcasts with songs in them could be chopped out of the podcast and widely distributed via those nasty P2P networks, with no royalties paid back to the labels as they usually are in radio. The Internet, after all, is often viewed by the music industry as the Wild West in that regard.

However, labels are beginning to slowly test the waters with unprotected files—in Weird Al's case, offering MP3s for free via his website helped propel him into the Billboard Top 10 for the first time in his career. Sony BMG's actions seem to indicate that the company is willing to do some cautious risk-taking in hopes that the podcasts will spur customer interest in buying more music, and other labels are sure to keep an eye on Sony's success.